1231.3653.01 – Business Simulation

(Prerequisites:Principles of Strategy)

First Semester – 2016/17

Section / Day / Hour / Exam date / Lecturer / Email / Telephone
01 / Sunday / 15:45-18:30
(Second half) / No exam / Dr. Uriel Stettner / / 03-6406330

Teaching Assistant (TA): TBD

Office Hours: By appointment

Course Units

1 course unit = 4 ECTS units

The ECTS (European Credit Transfer and Accumulation System) is a framework defined by the European Commission to allow for unified recognition of student academic achievements from different countries.

Course Description

This course offers a vivid action-based learning experience of strategy making and execution. In a multiple-round PC-based business game simulation[1] participants act as executive decision makers of firms operating in a world characterized by uncertainty and surprises. In an increasingly complex market setting of competitive strategic interaction, strategic and tactical decisions have to be taken with respect to typical business functions, such as purchasing, production, marketing & sales, finance, human resources, and R&D while stakeholder influences have to be anticipated and managed. The teams will formulate, implement, monitor and adjust their competitive and corporate strategies. Accompanying classroom sessions recap on concepts and tools of strategic management via annual (de)briefings.

This course will be taught in English.

Course Objectives

Upon completion of the course, the student will be able to better formulate and implement strategies that drive competitive organizations. This course will provide insight into how to identify and choose a superior competitive position, how to analyze a strategic situation, and how to create the organizational context to make the chosen strategy work. As such, the objectives of this course are to deploy conceptual frameworks and models to analyzing competitive situation and strategic dilemmas and gain insight into strategic management. You will build on insights developed in other course, explore and apply tools to arrive at understandings that are both applicable in the business world and deeply rooted in a thorough academic understanding. The emphasis throughout is on the application of conceptual models which clarify the interactions between industry, competition, firm resources, and the structure and development of firm capabilities.

Evaluation of Student and Composition of Grade
Percentage / Assignment / Date / Group Size/Comments
45% / Simulation / In class & homework / 4-5
45% / Final Exam (Simulation) / During Last Class Meeting / Individual
3% / Simulation Exercise / Before 1st class meeting / Individual
7% / Peer Evaluation / After Round 3 & 6 / Individual

* According to University regulations, participation in all classes of a course is mandatory (Article 5).

* Students who absent themselves from classes or do not actively participate in class may be removed from the course at the discretion of the lecturer. (Students remain financially liable for the course even if they are removed.)

Course Assignments

Student assessment is based on team as well as individual performance. A maximum of 100 performance points (Pts) can be achieved. In general, firm performance will be determined as a function of a firm’s achievement on a Balanced Scorecard (as provided by the simulation) which includes a variety of performance measures including equity position, the firm’s short-term performance, and organizational as well as operational aspects.

Grading Policy

In the 2008/9 academic year the Faculty instituted a grading policy for all graduate level courses that aims to maintain a certain level of the final course grade. Accordingly, the final average grade for this course (which is an elective course) will be in the range 83-87%. Additional information regarding this policy can be found on the Faculty website.

Evaluation of the Course by Student

Following completion of the course students will participate in a teaching survey to evaluate the instructor and the course, to provide feedback for the benefit of the students, the teachers and the university.

Course Site (Moodle)

The course site will be the primary tool to communicate messages and material to students. You should check the course site regularly for information on classes, assignments and exams, at the end of the course as well. Course material will be available on the course site.

Please note that topics that are not covered in the course material but are discussed in class are considered integral to the course and may be tested in examinations.

Course Outline*
Week / Topic(s) / Submissions / Comments
1 / Practice Rounds / Read Manual & complete Individual (Online) Simulation Exercise before the First Class meeting
2 / Round 1 + Debrief 1 / Read Manual again / You will have 120 minutes to complete Round 1 in class
Round 2 / Complete Round 2before start of class meeting #3
3 / Debrief 2 +Round 3 + Debrief 3 / You will have 100 minutes to complete Round 3 in class
4 / Round 4 + Debrief 4 / You will have 120 minutes to complete Round 4 in class
Round 5 / Complete Round 5 before start of class meeting #5
5 / Debrief 5Round 6 + Debrief 6 / Complete Round 5 by deadline (2 hours before start of class on Jan 8) / You will have 100 minutes to complete Round 6 in class
6 / Round 7 + Debrief 7Conclusion / You will have 100 minutes to complete Round 7 in class
7 / Final Exam / Every student must bring a laptop to class.

*Subject to change

Required Reading

Pre-readings and preparation: It is essential to read the Simulation Manual thoroughly and conclude the individual exercisesbefore the first class meeting. The exercise is designed to help you familiarize yourself with the user interface and operations of the simulation software.

[1]In this course we will be using the Capsim simulation software (